Life insurance

Life insurance is one of the most popular investments among French people, and for good reason: it combines flexibility, security, tax advantages and optimised inheritance. A true Swiss Army knife of wealth management, it can be adapted to all investor profiles, from the most cautious to the most dynamic.

Why choose life insurance?

Taking out life insurance allows you to:

• retain complete control over your capital, with the option of partial withdrawals or advances,

• diversify your investments between secure euro funds and dynamic unit-linked funds (UCITS, SCPIs, shares, bonds, etc.),

• benefit from a particularly attractive tax framework, both during your lifetime (surrender, withdrawals) and in the event of death (beneficiary clause).

The benefits of life insurance

✅ Security and flexibility: the euro fund guarantees capital and provides an annual return. Redemptions and arbitrage are possible at any time, with no payment limits.

✅ Diversification: access to a wide range of financial and real estate investments to build a tailor-made strategy.

✅ Tax advantages:

• In the event of withdrawal, only the interest portion is taxed.

• After eight years, gains benefit from an annual allowance of €4,600 (single person) or €9,200 (couple).

• Transfer outside of inheritance thanks to the beneficiary clause, with reduced taxation.

✅ Asset flexibility: possibility of scheduling partial surrenders to generate additional income, or splitting the beneficiary clause to protect your spouse while preparing your children's inheritance.

Points to watch out for

⚠️ Life insurance policies may incur entry and management fees that vary depending on the insurer.

⚠️ Unit-linked policies, although offering high returns, carry a risk of capital loss.

⚠️ Premiums that are clearly excessive may be reintegrated into the estate by the tax authorities.

Who can subscribe?

Any adult or minor may take out a life insurance policy, regardless of age. However, in the event of late subscription (very advanced age or poor health), the tax authorities may reclassify the policy and limit its benefits.

How does a contract work?

• No ceiling: complete freedom over the amounts paid in and the frequency of payments.

• Various investment vehicles: secure (euro funds) or dynamic (shares, SCPI, OPCI, FCP, etc.).

• Arbitrage options: savers can change the allocation of their capital as their objectives evolve.

• Availability: withdrawals (total or partial) and advances in case of liquidity needs, without blocking the contract.

Transfer and succession

Upon the death of the insured, the capital is transferred directly to the beneficiaries named in the contract, outside of the estate (except for excessive premiums).

👉 This optimises protection for the spouse or other relatives, while reducing inheritance tax.

Favourable taxation

• During the term of the contract: tax-free capitalisation as long as no withdrawals are made.

• In the event of withdrawal before 8 years: taxation at the Single Flat-Rate Levy (PFU) of 12.8% (or progressive scale if desired).

• After 8 years: taxation reduced to 7.5% on premiums under €150,000, with an annual allowance (€4,600 / €9,200).

• Transfer: preferential tax treatment, particularly for payments made before the age of 70.

  👉 In summary: life insurance is a flexible, secure and tax-efficient investment, ideal for saving, supplementing your income and preparing for the transfer of your assets.

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